How much bargaining power do you have?

Do you know how much bargaining power you have? If not, you should begin to assess your position, and also, where the other party is at.

Many times, one party will come to a business negotiation with more (or less) bargaining power than the other. Perhaps you are the new kid on the block. Perhaps you have been business for decades and have built a great network of suppliers. In each case, you may have a higher or lesser perceived bargaining power.

Bargaining power is the amount of leverage you have in the negotiation. Even if you seem to be at a disadvantage with the other party, there are ways of increasing your leverage. A large portion of bargaining power is perception. How does the other party perceive you? Can you do something to shape that perception?

As Paul Tobias, CEO of Mackinac Financial Corporation, said:
“If you sense you have bargaining power, you can write your own ticket.”

For instance, if you are a single buyer, you may feel you have little bargaining power against the seller. But you may have more leverage than you think. Here are a few ways to increase your leverage:

• Offer future business
• Offer to be a reference
• Increase your spending power--Bundle purchases together or add items to your order

Bargaining power is not static. You can find leverage if you are resourceful. Another factor is being confident and feeling that you have control over the situation.

Have you ever been in a situation of perceived disadvantage and turned it around? Share how you did it in the comments.